Post Office Senior Citizen Savings Scheme (SCSS) 2024

Senior Citizen Saving Scheme (SCSS) is a post office saving scheme for senior citizens above the age of 60 years. Applicants older than 55 years but less than 60 years can also open the Post Office Senior Citizen Saving Scheme if they have taken voluntary retirement or have retired on superannuation (subjected to terms and conditions). For amounts less than Rs. 1 lakh the payment can be done in cash. For amounts more than Rs. 1 lakh the payment can only be done via cheque.

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Let’s discuss the scheme in detail below.

Features of Post Office Senior Citizen Saving Scheme (SCSS)

A post office senior citizen saving scheme makes a good investment option for people who have retired as it offers an interest rate of 8.0% w.e.f January 01, 2023. Below are the important features of post office senior citizen savings scheme:

  • Post Office Senior Citizen Saving Scheme Maturity Period of SCSS: 5 years

  • Post Office Senior Citizen Saving Scheme Multiple Accounts: In SCSS a depositor/subscriber can have an individual account or a joint account with their spouse. The spouse should not necessarily be a senior citizen. The first depositor will be considered as the investor. And the maximum deposit limit in the joint account still remains at Rs. 15 lakhs (in the multiples of Rs. 1000) only. Though individuals can open multiple accounts the collective balance in all the accounts cannot exceed Rs. 15 lakhs.

  • Post Office Senior Citizen Scheme Nomination Facility: This Scheme allows the nomination facility while opening or after the opening of the account. The depositor can nominate any person by filling an application in Form C.

  • Post Office Senior Citizen Saving Scheme Account Transfer: The account is easily transferable from one post office to another. 

  • Post Office Senior Citizen Scheme Premature Closure: This scheme permits premature closure after 1 year on deduction of 1.5% of the deposited amount and 1% of the deposited amount after 2 years. Once the scheme is matured, it can be further extended for three by applying within one year of maturity. In that case, the Senior citizen saving account can be closed without any deduction after the expiry of one year of the extension.

  • Post Office Senior Citizen Scheme Tax Benefit: The depositor can claim tax benefits under Section 80C of the Income Tax Act, 1961 on the deposited amount.

Minimum and Maximum Deposit in Post Office Citizen Scheme

The scheme offers a steady source of income with one time investment of a fixed sum. However, the minimum limit of investment is Rs. 1000 and maximum is Rs.15 lakhs.

Eligibility Criteria to Open Post Office Senior Citizen Saving Scheme Account

  • Minimum Age Criteria for Post Office Senior Citizen Scheme: 60 years

  • Special Age Criterion: 55 years to 60 years in case of voluntary retirement or superannuation. Provided the account is opened within a month of receiving retirement benefits and the amount shall not exceed the retirement benefits.

How Many Accounts a Senior Citizen Can Open Under SCSS?

It is important to know that this scheme provides the option to deposit the funds into your account in a lump sum. As a result, an individual holding one account can also open multiple accounts under the scheme given that the total amount deposited does not exceed the maximum limit of Rs. 30 lakhs. However, opening more than one account in the same deposit branch is prohibited within the same calendar month.

Post Office Interest Rates for Senior Citizens

The central government authorizes the interest rate on the post office senior citizen scheme. Currently, it is 8.0% per annum (from January 01 to March 31, 2023).

Schemes Rate of interest  Compounding Frequency
Post Office Savings Account​​ 4.0% Annually
1 Year Time Deposit 6.6% Quarterly
2 Year Time Deposit​​ 6.8% Quarterly
3 Year Time Deposit​​ 6.9% Quarterly
5 Year Time Deposit 7.0% Quarterly
5 Year Recurring Deposit Scheme​​ 5.8% Quarterly
Senior Citizen Savings Scheme​​ 8.0% Quarterly and Paid
Monthly Income Account​​ 7.1% Monthly and paid
National Savings Certificate (VIII Issue) 7.0% Annually
Public Provident Fund Scheme​​ 7.1% Annually
Kisan Vikas Patra​​ 7.2% Annually
Sukanya Samriddhi Account Scheme​​ 7.6% Annually

Post Office Senior Citizen Saving Scheme - List of Documents

To make Investment in Post Office Senior Citizen Saving Scheme, the following documents need to be submitted by the applicants:-

  • Fill out the application form available at the Bank or Post office

  • Fill The Know Your Customer (KYC) form

  • Provide the Permanent Account Number (PAN) Card Number

  • Address Proof

  • Recent Photograph

  • Age Proof

  • Aadhaar Card

  • Retirement Benefits’ Disbursal Date

Also, the Applicant’s Employer Certificate mentioning the retirement VRS or Superannuation needs to be submitted.

How to Open a Senior Citizen Saving Scheme in the Post Office?

To make payment by cash the amount should be less than Rs. 1 lakh and if it is above Rs. 1 lakh then it is possible to pay by cheque. Submit all the documents that are mentioned above.

Carefully fill the SCSS Account Opening form while providing the nominee details. Also, the original identity proof is required for verification purposes. Finally, get a witness signature and complete the procedure to get started.

To automate the scheme, it is required to have a savings bank account and place a request for automatic transfer of Senior Citizen Scheme interest to the RD account through the depositor’s Post Office Savings Account.

Online Payment Facility for Post Office Senior Citizen Saving Scheme

Online payment facility is only available for Post Office RD account through ECS or Electronic Clearing Service. Also, one can get the payment done from an agent through the post office agent portal and he can make the payment online on the behalf of the depositor.

It is better to check with the post office branch to seek clarity regarding the Post Office Senior Citizen Scheme online payment.
Hope the above information proves to be helpful in case you want to open an SSCS Account in the Post office. Below are some of the frequently asked questions that you can refer to.

FAQ's

  • Which banks offer the Post Office Senior Citizen Savings Scheme?

    Besides the Post Office, the following banks offer the SCSS scheme:
    • Allahabad Bank
    • Bank of India
    • Syndicate Bank
    • UCO Bank
    • Union Bank of India
    • Vijaya Bank
    • ICICI Bank
    • Corporation Bank
    • Canara Bank
    • Central Bank of India
    • Dena Bank
    • IDBI Bank
    • State Bank of India
    • Indian Bank
    • Indian Overseas Bank
    • Punjab National Bank
    • Andhra bank
    • Bank of Maharashtra
    • Bank of Baroda
  • What is the current interest rate offered by the Post Office SCSS?

    The current rate is 8.0% per annum, payable from the date of deposit of 31st March/30th Sept/31st December in the first instance. Thereafter, interest shall be payable on 31st March, 30th June, 30th Sept and 31st December.
  • How often is the interest paid out for the Post Office SCSS?

    The interest is payable on the deposit date of March 31, September 30, and December 31, and after that, interest is payable on March 31, June 30, September 30, and December 31.
  • What is the maturity period of the Post Office SCSS?

    PO SCSS scheme accounts can be closed after 5 years from the date of opening.
  • Can the maturity period of the Post Office SCSS be extended?

    • Account holders can extend the account for a further period of 3 years from the date of maturity.
    • Account can be extended within 1 year of maturity.
  • Can an NRI invest in the Post Office SCSS?

    A Non-Resident Indian cannot invest directly in a Post Office scheme in India. For investment in the Post Office scheme in India, an NRI has to have a joint account with a relative being a resident in India.
  • How to open the account of the Senior Citizen Savings Scheme online?

    Banks may offer to open the Senior Citizen Savings Scheme account online through internet banking but sadly post offices do not provide the online service for the account opening. One needs to visit the bank branch or the post office and fill the form of account opening. The form then should be attached with the required documents such as the age proof, identity proof, address proof, and the cheque for the deposit sum.
  • What is the interest rate of the Senior Citizen Savings Scheme?

    Presently, the interest rate on an SCSS is 7.4 percent as of quarter 4 of the financial year 20-21. The interest will be payable on March 31, June 30, September 30 and December 31.
  • Is Section 80C of the IT Act, applicable to the Senior Citizen Savings Scheme?

    The investments made within the SCSS are entitled to income tax deduction benefit under Section 80C.
  • What is the maximum age limit to open the Senior Citizen Savings Scheme account?

    Anyone who is 60 years of age can easily open a Senior Citizen Savings Scheme account.
  • Is it possible for any family member to open a joint Senior Citizen Savings Scheme account with any member of the family?

    The joint SCSS account can only be opened by investing Rs 15 lakhs, in multiple of Rs 1,000 with the spouse.
  • In the case of the joint account, what should be the age of the spouse?

    When it comes to the joint account, the age of the primary depositor or applicant the age is the deciding factor for the eligibility to invest in the scheme. However, there is no age limitation for the second joint holder.
  • Is it possible to open the SCSS account with any person?

    No, the SCSS account can only be opened with the spouse.
  • Is the Senior Citizen Savings Scheme rate of interest simple or compounding?

    The Senior Citizen Savings Scheme interest rate is compounded and is payable quarterly.
  • How many accounts can be opened in a single name in the SCSS?

    A senior citizen can invest in the scheme by either opening an individual or a joint account. One can invest in any number of the SCSS account, however, limiting, to the threshold adding all accounts.
  • What is the share of the joint account holder in the deposit in the SCSS account?

    The whole investment amount in the account within the scheme is attributed to the first depositor only. The share of the second depositor, therefore, does not arise.
  • Is any fee charged for the nomination or cancellation/change of nomination?

    Any such fee has not been specified.
  • Is it possible to extend the SCSS account?

    The depositor can extend the account for a period of three years by simply making an application to the office of deposit within one year after maturity.
  • What if the SCSS account has been opened in contravention of the rules of SCSS?

    In case the account has been opened contravening the SCSS rules then the account will be closed immediately. The deposit in the account post the deduction of interest paid on such deposit will be refunded to the depositor.
  • Is it possible to open the Senior Citizen Savings Scheme account for a mentally retarded that can be operated by the guardian as appointed by the court?

    As of now, no such provision exists within the Senior Citizen Savings Scheme. No account can be opened in favor of a mentally retarded person.
  • How many times the deposit can be made in the SCSS account?

    The Senior Citizen Savings Scheme matures in 5-years. The lock-in period for the Senior Citizen Savings Scheme is five years. However, the investment can be eventually extended for the next three years.

Past 5 Year annualised returns as on 01-04-2024

^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.

Tax benefit is subject to changes in tax laws. Standard T&C Apply
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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

#The lumpsum benefit is calculated if policyholder invested ₹10000 monthly for 10 years in the fund with a policy term of 20 years. This Point To Point past performance data of last 10 years has been used to illustrate a scenario for the customers benefit. It is assumed that the past 10 years returns would have also been delivered in last 20 years. This is not guaranteed and not in anyway indicative of what the customer may actually get 20 years from now. The investment is subject to market risk and the risk is borne by the policyholder.

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